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5. EUROPEAN UNION POLICIES (II): THE REGIONAL POLICY

5. EUROPEAN UNION POLICIES (II): THE REGIONAL POLICY. 1.- OBJECTIVES AND PRINCIPLES 2.- STRUCTURAL FUNDS 3.- COHESION FUNDS. OBJECTIVES AND PRINCIPLES. OBJECTIVES TREATY OF ROME

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5. EUROPEAN UNION POLICIES (II): THE REGIONAL POLICY

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  1. 5. EUROPEAN UNION POLICIES (II): THE REGIONAL POLICY 1.- OBJECTIVES AND PRINCIPLES 2.- STRUCTURAL FUNDS 3.- COHESION FUNDS

  2. OBJECTIVES AND PRINCIPLES OBJECTIVES TREATY OF ROME • To reduce the disparities in the degree of development of the different regiones and the delaye of the less favoured regions SINGLE EUROPEAN ACT - Economic and social cohesion TREATY OF THE UNION (1992) • Creation of the Cohesion Fund

  3. OBJECTIVES AND PRINCIPLES • The Treaty of Rome foresaw the creation of the European Social Fund (ESF) • The regional disparities increased after the enlargements: Ireland and United Kingdom (1971), Greece (1981), Spain and Portugal (1986) • Necessity of a Regional Policy • Creation of the Structural Funds

  4. STRUCTURAL FUNDS 1.-EFRD: European Fund for Regional Development 2.-ESF: European Social Fund 3.-EAGGF: European Agricultural Guarantee and Guidance Fund- Guidance Section 4.-FIFG: Financial Instrument for Fisheries Guidance After 1993: • Integration of all the structural interventions in a global strategy against unemployment and in the promotion of less favoured regions.

  5. STRUCTURAL FUNDS OBJECTIVES (1988-1993 and 1994-1999) • OBJECTIVE 1 PROMOTE DEVELOPMENT AND THE STRUCTURAL ADJUSTMENT IN THE LESS DEVELOPED REGIONS • OBJECTIVE 2RECONVERSION OF THE REGIONS AFFECTED BY INDUSTRIAL DECLINE • OBJECTIVE 3 REDUCE THE UNEMPLOYMENT OF LONG DURATION • OBJECTIVE 4FACILITE THE ADAPTATION OF THE WORKERS TO THE INDUSTRIAL CHANGE • OBJECTIVE 5PROMOTE THE RURAL DEVELOPMENT • AACCELERATE THE ADAPTATION OF AGRARIAN STRUCTURES • BFACILITATE THE DEVELOPMENT AND THE STRUCTURAL ADJUSTMENT IN THE RURAL AREAS

  6. OBJECTIVE 1 (2000-2006) • SCOPE: NUTS II regions with GDP per person lower than the 75% of the EU average (1994/96) • List of the regions decided and approved by the European Commission • 22% of the EU population • 69.7% of the funds (136 billions of EUROS)

  7. OBJECTIVE 2 (2000-2006) • Total Coverage = 18% of the EU population • 11.5% of the Funds (22.5 billions of EUROS) • Regions under economic reestructuration • Indicative coverage of 4 kind of areas (all the EU) : • Industrial and Services areas (10%) • Rural areas (5%) • Urban areas (2%) • Fisheries dependent areas (1%) • Transition period of 6 years for regions that have lost their elegibility

  8. OBJECTIVE 3 (2000-2006) • All regions not supported by Objective 1 • Reference framework for all the actions relative to the human resources inside a MS • 12.3% of the Funds (24 billion of EUROS) • Adaptation and modernization of the education, formation and employment systems: • Accompanying the economic and social changes • Education and formation systems for all whole life • Active labor market policy against unemployment • Promotion of social integration and equal opportunities

  9. Distribution of resources between structural funds (2000-2006) • 69.7% for Objective 1 (incl. Lost of obj.) • 11.5% for Objective 2 (incl. Lost of obj.) • 12.3% for Objective 3 • 5.35% for Community Initiatives • 0.40% for Innovative Actions • 0.25% for Technical Assistance • 0.5% for FIFG ot of Objective 1

  10. Eligible regions 2000-2006

  11. Structural Funds: Distribution among MS and Objective for 2000-2006 Total Obj 1 Obj 2 Million EUROS (1999)

  12. Population inside Objective 1 regions during 2000-2006 Inhabitants Member state

  13. Maximum of popularion under Objective 2in each MS during 2000-2006

  14. COHESION FUND • It was created in 1994 • OBJECTIVES • To search the economic and social cohesion of the EU • Scope: MS whose GNP per capita < 90% UE average Main destination of the funds • Environmental projects • Transport infrastructures of common interest • Previous reports • Technical assistance and related reports

  15. The future of cohesion funds • Maintaining the elegibility criteria: • For countries whose GNP per capita is less than 90% of the EU average • For projects in the sectors of envrionment and transport • Distribution between MS: • Spain61-63% • Portugal16-18% • Greece16-18% • Ireland 2-6%

  16. SUMMARY • Europe is not just a custom union; there are some common policies that make a big effort indefining global goals for the whole Community. • A balanced development an convergence between regions are main European objectives. • The impact of these policies of some results in the redistribution of income among countries. • However, the enlargement has widened tha number of elegible regions and the potential benefitiary population … • …but the budget restrictions (1.27% GDP) could limit the future development of these policies

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